Managing Your Small Business Finances

According to the U.S. Small Business Association, 40 percent of smaller, independently owned and operated businesses survive for five years or more. And information from the Federation of Independent Business (NFIB) indicates that only 39 percent of these independent businesses are profitable.

However, this doesn't mean your business doesn't have a chance. It does. But if you want to be the business that succeeds, you'll have to offer more than fantastic products and services. You'll have to learn how to manage your business finances.

Sure, sometimes managing your personal finances can be challenging enough. Managing your business finances is even more complicated, and can lead to plenty of stress. But if you can't collect, track and save your money appropriately, you'll be risking your profitability and success. Poor financial management is one of the top reasons businesses fail.

Improve Your Business Financial Management

Applying sound business principles to all of your decisions will help ensure your company's success and longevity — so don't rely solely on your accountant, bookkeeper, financial planner or banker. Be proactive. Keep all of your records up-to-date, learn the basic principles of small business finances, and apply them on a daily basis.

Collections: The First Step to Good Business Finances

Credits and Collections: Determine if you should accept credit cards and other forms of payments, and learn the best methods for quickly and efficiently collecting the debt owed to you. Find out how alternative payments, such as trading products and services, or factoring, can positively and negatively affect your business.

Tracking: The Second Step to Good Business Finances

Basic Bookkeeping: Learn how to record your daily transactions, generate financial statements, and work with your accountant on a regular basis — or manage them yourself with a variety of financial management tools from our partners.
Cash Flow Management: Discover how to reduce the ebbs and flows of your cash and liquid assets by assessing and projecting your needs, and spotting opportunities to increase your income or reduce your expenses.
Trend Forecasting: Examine your business finances on a deeper level to identify both positive and negatives that can help you manage your company's finances more efficiently.

Other Important Areas for Good Business Financial Management

Banking: Decide what type of savings and checking accounts are best suited to your needs.
Investing: Learn how to maximize the return on your surplus cash by choosing the best investments.
Evaluating: Use professional financial management tools to evaluate expensive potential capital investments, like equipment, facilities and more.

Learn More About Good Business Financial Management

For more tips on managing your business finances, browse through more articles in our Business Resource Center, browse the business discounts section for great tools for your business.

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